What is the 'Remodel Deadline' in the Burger King 'Reclaim the Flame Master Program Agreement'?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
BKC has established the Reclaim the Flame Program, under which certain existing Burger King franchisees are offered the opportunity to earn incentives by completing a Reclaim the Flame remodel (as described herein) (a "RTF Remodel") on certain restaurant(s) they operate by certain deadlines (as provided herein) (the "Reclaim the Flame Remodel Program"). Franchisee has indicated a desire to participate in the Reclaim the Flame Remodel Program for the Restaurants (as hereinafter defined) on the terms set forth in this Program Agreement and BKC has determined that Franchisee is qualified to participate in the Reclaim the Flame Remodel Program. Franchisee desires to conclude the RTF Remodel(s) for all the Restaurants by the applicable Remodel Deadlines set forth below.
NOW, THEREFORE, in consideration of the mutual terms, conditions and covenants hereinafter set forth and for other good and valuable consideration which each of the parties hereto acknowledge is sufficient to create a binding agreement, the parties agree as follows:
- Restaurants; Remodel Deadlines. Franchisee agrees to participate in the Reclaim the Flame Remodel Program for the following restaurants which Franchisee hereby commits to remodel through the Reclaim the Flame Remodel Program (each, a "Restaurant"). Franchisee further commits to successfully complete the required RTF Remodel(s) of each Restaurant by the "Remodel Deadline" for such Restaurant specified in the following schedule:
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, the 'Remodel Deadline' is a key component of the 'Reclaim the Flame Remodel Program'. This program incentivizes existing Burger King franchisees to remodel their restaurants to meet current brand standards. The Franchise Disclosure Document states that franchisees participating in the 'Reclaim the Flame Remodel Program' commit to completing the required remodel of each restaurant by the 'Remodel Deadline' specified for that restaurant.
The 'Remodel Deadline' is important because it directly affects a franchisee's eligibility for incentives. To receive incentives, including the Franchisor Contribution, franchisees must successfully complete the remodel by the specified 'Remodel Deadline'. Furthermore, franchisees must execute the successor Franchise Agreement and pay the successor franchise fee for each restaurant to qualify for the incentives.
If a Burger King franchisee fails to meet the 'Remodel Deadline', they face several consequences. The royalty rate under the existing Franchise Agreement increases by three percent (3.0%) on monthly Gross Sales, starting from the 'Remodel Deadline' until the remodel is completed. Additionally, the franchisee is granted a one-year 'Remodel Cure Period' to complete the remodel. Failure to complete the remodel within this cure period results in the automatic termination of the Program Agreement and forfeiture of all rights and incentives.
Burger King's construction manager has the sole discretion to verify the successful completion of the remodel according to the Remodel Requirements. This verification is crucial for determining whether the franchisee has met the 'Remodel Deadline' and is eligible for incentives. The specific requirements for the remodel are detailed in the Facility Inspection Report and the Remodel Requirements Guidelines, which are available on designwithbk.com.